board growth and development workshop #2
DESCRIPTION
Board Growth and Development Workshop #2. 2:30pm – 4:00pm Richard Male & Associates. Welcome Funding Trends Unlocking Corporations Raising Money Roles and Responsibilities/ Evaluation Succession Planning Open Discussion/Questions. AGENDA. Funding Trends Across America. - PowerPoint PPT PresentationTRANSCRIPT
Board Growth and DevelopmentWorkshop #2
2:30pm – 4:00pmRichard Male & Associates
1
2
AGENDA
Welcome
Funding Trends
Unlocking Corporations
Raising Money
Roles and Responsibilities/ Evaluation
Succession Planning
Open Discussion/Questions
Funding Trends Across America
Current Trends and Future Issues
Significant cuts on public dollars at state and local levels.
Less federal money is available except for “trendy” issues. ( health care, homeland security, economic development.)
Foundation giving will increase about 2-3% in 2012/2013 and giving will continue to go to “programs, projects and some capital campaigns”
Individual donations will decrease slightly ( about 1-2%) and will be targeted more to personal contacts and experiences of the donors.
Current Trends and Future Issues- 2012-2013
Corporate donations will remain steady at 1% of pre-taxed income but corporate sponsorships with nonprofit special events will increase
Philanthropic trusts managed primarily by financial institutions are growing moderately.
Transfer of stock is a growth area.Country is aging.Charitable trusts at mutual funds and banks
are growing.
Cartoon
www.kluth.org/cartooons
Philanthropic Trusts:The Hidden Pockets of Money
Managed by trust departments primarily at Financial Institutions
Use banking relationships to gain accessGrant size usually in the $5,000-$10,000 range
Purpose – can be used as general operating funds
Generally long term support
Unlocking Corporations
New Corporate Philanthropy
ProductEndorsement
MembershipsPhilanthropy
Service
Endorsement MarketingIn-Kind:•Volunteers
•Product/Services
•Tech. Assistance•Matching Gifts
Sponsorships/
Events
Two Vehicles of Giving:•Corporate Giving Programs•Corporate Foundations/Trusts
Corporate Giving - Don’t Just Think of Money
There are THREE primary ways in which corporations can help your organization
1. Financial- Gifts-Traditional Philanthropy (Corporate Foundations)- Memberships- Marketing (Corporate Giving Programs)- Sponsorships (special events) - Endorsement of Services- Matching Gifts
Richard Male & Assoc, LLC
Corporate Giving - Don’t Just Think of Money
2. In-Kind Gifts / Product Contributions
- Office Equipment- Computers- Furniture- Consumer Goods- Printing- Use of Facilities - Donations for Raffles (products or services)- Advertising (newspapers, TV & in-house/external corporate publications)
Richard Male & Assoc, LLC
Cartoon
http://blogs.thetimes-tribune.com/johncole/?tag=united-way
Corporate Giving - Don’t Just Think of Money
Richard Male & Assoc, LLC
3. Employee Involvement
• Computers/Technical • Marketing/Public Relations/Media/Design• Legal (incorporation, bylaws, personnel
policies, tax questions) Financial (budgeting, financial planning)
• Board of Directors• Committees (standing
committees/committee assignments)
Commun
ity Customer
Employee
The Corporate Triangle
Product Donations by Major Corporations
376.6
288 283
179
151
91.5
60 51.633 30.7 25.3 25.2 20.5 19.9 14.4 14 13.3
0
50
100
150
200
250
300
350
400
$ M
illio
ns
PfizerBristol MeyersMerckMicrosoftJohnson & JohnsonIBMSafewayKrogerHewlett PackardSearsMinnesota MiningAT&THome DepotIntelPhillip MorrisSara LeeCisco Systems
Richard Male & Assoc, LLC
Are You Ready To Raise Money?A checklist of the essential pieces
you need in place
Financial Self-sufficiency
9. Evaluation / reporting
8. Execution of the plan
7. Infrastructure: designatedstaff / resources / database
6. Resource DevelopmentPlan / road map
5. Trust / accountability / teamwork
4. Strong programs / compelling need
3. Leadership withinorganization
2. Commitment from board and staff
1. Desire to become self-sufficient
What It Takes
Are You Ready To Raise BIG Money?(what the large donors are interested in)
1. Clear sense of mission?2. Are your programs strong?3. Is your leadership active and engaged?4. Are you in touch with your constituency,
members or clients?5. Is there a working partnership between staff and
leadership?
Are You Ready To Raise Money, cont.6. Do your goals match your budget?7. Are your financial reporting systems in place?8. Do you have a successful track record of raising
money?9. Are you accountable for your money?10. Can you demonstrate results?
Richard Male & Associates
http://www.richardm
ale.com
Roles and Responsibilities:ED/CEO & Board Chair
“The old adage ‘People are your most important asset’ is wrong. People are not your
most important asset. The right people are.
Good to great depends on having the right people on the right bus at the right time.”
— Jim Collins, Good to Great
Role of the CEO/Executive Director in relationship to the board of directors
To manage not lead the board To share strategy with the board so that the board can lead the board To organize the Board leadership To work closely with the Board Chair so she/he can lead To build up the executive committee to lead and to develop future
leadership To have a close relationship between the CEO and board chair- meet
every week To have contact with each board member(outside of board meetings)
every two weeks with every board member
Evaluation Process of the CEO/Executive Director Formally conducted once per year Functions informally as an on-going practice- regular
feedback Involves partnering with the Board and CEO Assessment of compensation and benefits should be
incorporated within the evaluation Executive Committee or Compensation Committee
should lead the process
Factors to Consider during CEO/ED Evaluation Leadership
Vision, Values, Mission, Management and Performance Management
Organizational structure, stakeholders, policies, procedures, budgeting, management team
Financial Management Income statements, balance sheets, cash flow, revenue
streams, funding, endowments, audits, ratios
Fundraising Diversification, board engagement, increase revenue
and reserve funds, endowment, ratio of fundraising vs. programs
Programs Impact, results, accomplishments, effectiveness,
efficiencyBoard Enhancement
Chair of the Board, committees, growth and development, education
Factors to Consider during CEO/ED Evaluation
Roles of the Board Chair To help motivate others to become involved and unify the board To ask members to donate to the organization on a yearly basis To address the board contract and make people accountable for
fulfilling the contract To accompany the Executive Director on ‘asks’ and funder
interviews To be a role model in resource development efforts To coordinate the efforts of the Development Committee with
the whole Board To lead the Board – To Unify the Board To allow other opinions to be expressed and invite all members
to participate
Cultural Issues Every board is a mix of cultures with differences-
abilities, age, work, gender, wealth, wisdom and race.
Cultural issues can undercut organizations if they are not recognized by the Executive Director and Board Chair
ED and Board Chair should develop a strategy to weave culture differences into a mosaic of success
Recruitment of new board members should be alert to understanding and embracing the individuals diversity & cultural differences
Succession Planning
“Is not only about determining your organization’s next leader, it is a continuous process that assesses organizational needs, and creates a climate for an executive to succeed. An effective succession plan is linked to the organization’s strategic plan, mission and vision… “ — Nancy R. Axelrod, Chief Executive
Succession Planning: The Board’s Role in Securing Your Organization’s Future
Key Questions in Succession Planningfor the executive director
1. Why do we need a succession plan in the first place and for what positions? 2. Do we fill the senior executive position from the outside or promote from within—i.e.,
the “unofficial successor” who has worked alongside the executive during the past several years?
3. What are we really looking for in a new executive? Should we consider new requirements from those possessed by the departing leader?
4. How do we address concerns by the current leadership staff who may be nervous about a new executive joining the organization?
5. How long should we plan for the process to take? 6. What do we do in the interim? Do we need an acting executive? If so, what does that
look like in terms of compensation, authority and decision-making responsibilities? 7. What action do we need to take to ensure that current funders do not get nervous
about the executive’s departure?
Source: FRBKC.Org
Key Questions in Succession Planning for the Executive Director
8. If your executive is suddenly unable to serve, or retires, have you identified candidates for the job?
- If the answer is yes, is that talent prepared? Do they have the required leadership style, financial knowledge, contacts and necessary experience to take charge of the organization and continue to provide clients and funders with uninterrupted services?
- If the answer is no, what is your plan for hiring another executive who understands how to lead your organization and continue to provide uninterrupted service to your clients and funders?
- Does everyone within the organization know who will be the acting executive until the board can meet and appoint someone officially?
Source: FRBKC.Org
9. Would your organization be able to sustain a decline in income or fundraising activities without the executive? Is the executive the primary fundraiser? Is the funding tied to the executive director or the organizations? Do board and staff work with the executive to maintain relationships with funders?10. Will the organization lose institutional knowledge and contacts if your executive were to suddenly leave?
Key Questions for the CEOSource: FRBKC.Org
Cartoon
1. Process should include: board members, key staff, CEO, majors donors, and stakeholders2. Executive Committee should help develop/form the Succession Committee or act as the succession committee3. Define titles/job descriptions for positions involved in Succession Planning process Is it only the CEO/executive director? Succession for board chair and officers? CFO?COO? Program Director? Etc. 4. Evaluate the expertise, skills, personality, traits, values, and leadership style that will be required.5. Define roles and responsibilities of the executive committee
Succession ProcessSource: FRBKC.Org
6. Determine the executive search strategy, timeline, and costs7. Design the Succession Plan8. Staff, board, and stakeholders to review the plan9. Formally adopt the plan10. Incorporate the internal and external communication strategy in the plan.
Succession ProcessSource: FRBKC.Org
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